Carreras Café is a Spanish restaurant in a college town. The
owner expects that the number of meals served in June will be 40
percent below those served in May, because so many students leave
for the summer. In May, the restaurant served 4,400 meals at an
average price of $20. In the summer (June through August), the
average price of a meal typically increases by 35 percent and the
average food cost of a meal increases by 10 percent. Other costs
are typically unchanged during the summer. The following cost
information is available for May.
| Service costs (variable with respect to meals) | ||
| Variable service costs (with respect to meals) | ||
| Food costs | $ | 11,200 |
| Labor | 17,000 | |
| Other variable costs | 6,100 | |
| Fixed service costs | 9,200 | |
| Total service costs | $ | 43,500 |
| Marketing and administrative costs | ||
| Marketing (variable with respect to meals) | 6,000 | |
| Administrative (fixed) | 4,700 | |
| Total marketing and administrative costs | $ | 10,700 |
| Total costs | $ | 54,200 |
Required:
Prepare a budgeted income statement for June. (Do not round intermediate calculations.)